Issue - meetings

Draft Housing Revenue Account Budget Update 2024-25

Meeting: 14/12/2023 - Executive (Item 8)

8 Draft Housing Revenue Account Budget Update 2024-25 EXE23-060 pdf icon PDF 149 KB

Reporting Persons – Eugene Walker and Louise Strongitharm

Additional documents:


The Executive received a report which set out the Council’s current position in preparing the draft Housing Revenue Account (HRA) budgets for 2024/25 prior to the final report to Council in February 2024.  Councillor Roberts, Portfolio Holder for Finance, reported that the HRA would likely be in balance next year with an estimated surplus of circa £1m which could be invested back into much needed capital improvements to HRA stock.  Uncertainties remained regarding future capital financing requirements and the Government’s rent setting approach.  It was noted that the 30-year HRA Business Plan would be updated as part of the budget setting process.

The work taking place to review the charges to the HRA account for the current year and last year was welcomed.  Once that work was completed, Councillor Johnson, Portfolio Holder for Housing, asked that recharges to the HRA in previous years be reviewed so that the money could be recovered from the General Fund.

The Executive expressed regret at the proposed closure of Brockhill Extra Care Housing scheme, a much valued and loved facility.  Due to the significant capital expenditure required on fire safety remedial works, a full heating system replacement and limited investment over the years, the building was unfortunately considered unviable due to the level of capital investment needed; some £5.8m over the next 10 years.  In addition, the design and layout of the building did not meet the current expectations for extra care housing as set out in Surrey County Council’s Accommodation with Care and Support Strategy and national best practice.  The Executive thanked Officers for providing support and assistance to Brockhill residents on an individual basis during this worrying time.  The Council was working with Surrey County Council to find solutions for those vulnerable residents.


That  (i)    progress in preparing the draft Housing Revenue Account budgets for 2024/25 be noted;

          (ii)   Managers, Corporate Leadership Team and Portfolio Holders continue detailed budget preparation for consideration by the Executive in February 2024; and

          (iii)  the Council commences consultation with residents, their families and other stakeholders on the proposed closure of Brockhill Extra Care Housing scheme.

Reason:   Consideration of these proposals will enable the preparation of the Council’s Housing Revenue Account budgets for 2024/25 to proceed.

Meeting: 11/12/2023 - Overview and Scrutiny Committee (Item 5)

5 Draft Housing Revenue Account Budget Update 2024-25 OSC23-065 pdf icon PDF 63 KB

Reporting Person: Louise Strongitharm / Eugene Walker

Additional documents:


Louise Strongitharm, Strategic Director of Communities, introduced the item.

Officers were forecasting an ongoing deficit of £1 million on the Housing Revenue Account (HRA) with no reserves available.

The September Consumer Price Index had been published.  There had been no indication from Government of deviation from the CPI+1% policy for increasing rental prices for local authorities.  If that policy were to be employed, it was estimated that rental income would increase by £1.6 million.

Approximately 70% of Council tenants were in receipt of housing benefits or universal credit to pay for rents.  The remaining 30% were self-funding.

Further work was required to be able to set the HRA budget but it was anticipated that it would be at a surplus.  Capital investment for the housing stock required calculation.

The Council was to begin consulting on the closure of the Brockhill facility and how residents would be supported.

Councillor Johnson noted that the CPI for the previous year was 8.2% while the Council had increased rent by 7%.  Additionally, the Government had stipulated that Councils were to reduce rents for several years previously.  Funding was required to be able to effect housing stock repairs and investments.


That the report be noted.